When a Company Becomes Aware That a New Product Is

question 232

Multiple Choice

When a company becomes aware that a new product is being test marketed by one of its competitors in St. Louis, it decides to create a similar product and rush it to market. This company can be described as a(n) :

• A) copycat.
• B) innovator.
• C) me-too imitator.
• D) first mover.

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Definitions:

Statement of Cash Flows

A document that outlines the overall cash income from both the operational efforts and investment income of a company, and the expenditure on business activities and investment payments over a specified period.

Operating Activities

Activities related to the day-to-day functions of a business involved in producing and selling its products or services.

Indirect Method

A method used for the cash flow statement that starts with net income and adjusts for changes in account balances that affect available cash.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into service.